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Department: Purchasing
Director: Denise Tacke, Director of Finance
Agenda Item: Contract Increase for Operational Supplies from Amazon Services, LLC
Recommended Action: Approval of Contract Modification
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Item Summary
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To approve an increase to the current awarded contract of $520,000 by $230,000 for a total contract amount of $750,000 annually for the purchase of operational supplies from Amazon Services, LLC, Amazon Business for all City departments; and authorizing the City Manager to execute all necessary documents. (Contract No. 2020-0004-C; Modification No. 2)
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Previous Action/Presentation
Council approved the initial contract on October 14, 2019, in the amount of $300,000 annually.
Council modified the award on January 10, 2022, in the amount of $220,000 for a total contract amount of $520,000 annually.
Background
The scope of services for this contract includes provision of an online marketplace that is used for the purchase of operational supplies from Amazon Business for all City departments. Amazon Business provides business-tailored features including purchase control options, approval workflows, shared payment methods, tax exemption, and procurement analytics.
Orders placed through the Amazon Business portal are routed to a designated approver for review of appropriateness and general ledger codes. This approval is required before an order is submitted to Amazon for processing. The account restricts delivery addresses to designated City locations. The Amazon Tax Exemption Program (ATEP) enables us to make tax-exempt purchases across the organization and manage our tax exemption by blocking sellers who opt not to participate in ATEP.
The program was introduced to all City departments in late calendar year 2019. At that time, we anticipated that usage would grow as departments became familiar with the benefits associated with the shared account, and this has proven to be true. Amazon purchases have been distributed acros...
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